IB03
Import Export Documentation
Assignment - I
Assignment Code: 2015IB03A1 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques.1 In April, 2013 Director General of Foreign Trade has revised the Foreign Trade Policy 2009-14. Discuss the new Incentives announced for the exporters in the policy.
Ques.2 Importer Exporter Code number is necessary for carrying out Export-Import Business in India and Registration Cum Membership Certificate is necessary to avail the incentives from the Govt. by the exporters? How these documents are obtained. Discuss the complete procedures.
Ques.3 International Chamber of Commerce has issued a new set of International Commercial Terms (INCOTERMS) in Dec.2010 which is effective from 1.1.2011. How INCOTERMS-2010 are different from INCOTERMS 2000? Discuss with suitable examples.
Ques. 4 What is the role of export promotion councils in promoting exports?
Section-B
Case Study: General Provisions Regarding Imports and Exports
Shaw Moisture Meters has a long and illustrious history of exporting to India where its ultra precision instruments have long been prized for their quality. It began exporting to India 30 years ago and the country remains one of its top six worldwide markets. The firm, whose dew point meters measure in parts per billion, was originally set up to test the moisture content of wool in the Yorkshire textile industry in the immediate post-war years. Since then, Shaw Moisture Meters has specialized in measuring trace moisture in gases and compressed air and its products have found applications in numerous industries.
In India the firm sells too many industrial companies including compressed air, electronics manufacture and power generation applications.
The company operates in India using a long-standing representative, although managing director Tim Peters has regular contact with both the representative and end customers to maintain all-important relationships. He stresses the importance of keeping those on the ground up to date with as much information and support as possible to retain close ties with customers. It’s a growth market and we are seeing increasing levels of business,” he says. “We have a strong presence there and it’s improving. We have a massive plus in India because of our pedigree. Our history of being an established British manufacturing company stands us in good stead. Our reputation for a quality product and excellent levels of service is complemented by being in business for 60 years. As many other exporters have discovered, having close ties with those whom you deal with is all-important in India – and very different from doing business in European countries.
Mr Peters cautions that one of the downsides of doing business in India is the amount of bureaucracy which is often involved. Administrative delays, quality inspections are common problems in India. Many organizations seem to have taken British bureaucracy and tripled it,” he adds. “We do more Letters of Credit for India than anywhere else and it is the preferred option for most of the nationalized industries. The extra paperwork creates a lot of additional work with the order processing and payments procedures.
In India, more than any other country in the world, paperwork is done in triplicate and there are a lot of stages in the purchasing process. But if you get it right, Indian companies are happy to deal with you again.
5. Case Questions:
a. As an Exporter what major bureaucratic problems you face in India.
b. What is the advice of Mr. Peters to his people for doing business in India.
IB03
Import Export Documentation
Assignment - II
Assignment Code: 2015IB03A2 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 Export Promotion Capital Goods Scheme (EPCG) has been revised by Director General of Foreign Trade in 2012 and 2013. What are the major amendments in this scheme? What penalties/ punishments DGFT can impose In case an exporter does not fulfill the Export Obligation under the Scheme?
Ques. 2 What do you mean by Status Holder Scheme under the foreign Trade Policy 2009-14. What special incentives/ benefits are available to the Status holders in India? Discuss the minimum limit of FOB/FOR Export value for all the categories of Status holders.
Ques.3 Explain the salient features of Foreign Trade (Development & Regulations) Act, 1992 and explain the role of Board of Trade in deciding the Foreign Trade Policy of India.
Ques. 4 Write short notes on
(a). Electronic Data Exchange
(b). Export Oriented Units
(c) Export Bill
(d) Delivered at Terminal (DAT)
(e) Delivered at Place (DAP)
Section-B
Case Study:
Read the following case carefully and answer the questions given at the end
India is facing stiff competition in the world markets for export of rice. Besides, there are many domestic problems for rice exporters. If these internal problems are relaxed to the extent possible, the exporters may find easy way to boost rice export and such measures will go a long way to sustain the exports. Some of the major problems are as under:
As per the state Govt. policy, various taxes are imposed on rice exports, such as the states are imposing Purchase Tax (on indirect export), Market Fees, Rural Development Fund, Administrative Charges etc. These taxes are rendering the pricing of rice internationally in competitive. Thus, Indian rice becomes costlier in the international market as compared to other competing countries in the world and Indian rice exports get setback many times. In fact, in Pakistan rice meant for exports specially the branded ones; duties are extremely low or duty free.
There is lack of proper infrastructural facilities. Many times exporters, when they carry their stock to sea port and if the stock is not loaded due to some reason or the other, exporters do not find a warehouse or proper place to store their stocks properly and safely at sea port, exporters have to face lot of difficulties, besides, it adds additional expenditure to the exporters. Due to increase in the cost of inputs used for paddy cultivation the production cost goes up and the Minimum Support Price (MSP) for paddy is enhanced every year by the govt. of India to safeguard the interest of the growers. When paddy is converted to rice, it becomes costlier and thus makes it internationally uncompetitive. Rice production meant for export purpose is having subsidy in other countries, which reduces their cost of production and thereby reducing the cost of rice. Therefore, the export price of rice of such countries is more competitive in the international markets compared to Indian rice. The major rice producing nations have decreased the price to capture the international markets but Indian rice prices are inelastic due to relatively high cost of production and become uncompetitive in the international markets. Much of basmati rice export prospects have been lost in the recent part to other competing countries like Pakistan etc because of high prices. Rice mills have not been fully modernized to ensure high milling recovery and reduce the percentage of broken rice. The conventional rice mills are having Rubber Roll Sheller in which percentage of broken rice is more than the modern rice mills that are having under Runner Sheller. Hence, head rice obtained from milling of conventional mills becomes costly due to recovery of higher percentage of broken rice. Therefore, conventional mills are required to be modernized to get recovery of higher percentage of head rice suitable for export. Lack of proper arrangements for production of sufficient quantity of quality seeds needed for cultivation of rice for export purposes.
The export is also suffering much due to the competition from other exporting countries like Thailand, Vietnam and Pakistan because the cost of production in these competing countries is low as compared to the cost of production in India. In fact, trade segment believes that Indian rice can face the global competition if subsidy is provided. In these days basmati rice is facing aroma problem, because intensity of aroma in traditional basmati varieties is not as high as it used to be. Also Basmati varieties are highly prone to lodging and lodging affects the natural grain development. In such situation both aroma and linear kernel elongation are affected. Post harvest handling of produce is another important aspect. Generally, farmers are harvesting the crop at different moisture levels and keeping the produce at higher moisture level for a longer period will impair the intensity of aroma.
In absence of genetically pure seed of basmati varieties, in majority of basmati rice fields, a variation in plant height, grain size and maturity of the crop is found. This is one of the major reasons for poor quality of basmati rice. In fact, at the time of rice processing the grain size can be taken care of, but it is a waste. However, using good quality seed the loss can be converted into profit.
5. Case Questions:
a. List out the problems of Rice Exporters of India.
b. Suggest the measures to overcome these problems.
Import Export Documentation
Assignment - I
Assignment Code: 2015IB03A1 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques.1 In April, 2013 Director General of Foreign Trade has revised the Foreign Trade Policy 2009-14. Discuss the new Incentives announced for the exporters in the policy.
Ques.2 Importer Exporter Code number is necessary for carrying out Export-Import Business in India and Registration Cum Membership Certificate is necessary to avail the incentives from the Govt. by the exporters? How these documents are obtained. Discuss the complete procedures.
Ques.3 International Chamber of Commerce has issued a new set of International Commercial Terms (INCOTERMS) in Dec.2010 which is effective from 1.1.2011. How INCOTERMS-2010 are different from INCOTERMS 2000? Discuss with suitable examples.
Ques. 4 What is the role of export promotion councils in promoting exports?
Section-B
Case Study: General Provisions Regarding Imports and Exports
Shaw Moisture Meters has a long and illustrious history of exporting to India where its ultra precision instruments have long been prized for their quality. It began exporting to India 30 years ago and the country remains one of its top six worldwide markets. The firm, whose dew point meters measure in parts per billion, was originally set up to test the moisture content of wool in the Yorkshire textile industry in the immediate post-war years. Since then, Shaw Moisture Meters has specialized in measuring trace moisture in gases and compressed air and its products have found applications in numerous industries.
In India the firm sells too many industrial companies including compressed air, electronics manufacture and power generation applications.
The company operates in India using a long-standing representative, although managing director Tim Peters has regular contact with both the representative and end customers to maintain all-important relationships. He stresses the importance of keeping those on the ground up to date with as much information and support as possible to retain close ties with customers. It’s a growth market and we are seeing increasing levels of business,” he says. “We have a strong presence there and it’s improving. We have a massive plus in India because of our pedigree. Our history of being an established British manufacturing company stands us in good stead. Our reputation for a quality product and excellent levels of service is complemented by being in business for 60 years. As many other exporters have discovered, having close ties with those whom you deal with is all-important in India – and very different from doing business in European countries.
Mr Peters cautions that one of the downsides of doing business in India is the amount of bureaucracy which is often involved. Administrative delays, quality inspections are common problems in India. Many organizations seem to have taken British bureaucracy and tripled it,” he adds. “We do more Letters of Credit for India than anywhere else and it is the preferred option for most of the nationalized industries. The extra paperwork creates a lot of additional work with the order processing and payments procedures.
In India, more than any other country in the world, paperwork is done in triplicate and there are a lot of stages in the purchasing process. But if you get it right, Indian companies are happy to deal with you again.
5. Case Questions:
a. As an Exporter what major bureaucratic problems you face in India.
b. What is the advice of Mr. Peters to his people for doing business in India.
IB03
Import Export Documentation
Assignment - II
Assignment Code: 2015IB03A2 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 Export Promotion Capital Goods Scheme (EPCG) has been revised by Director General of Foreign Trade in 2012 and 2013. What are the major amendments in this scheme? What penalties/ punishments DGFT can impose In case an exporter does not fulfill the Export Obligation under the Scheme?
Ques. 2 What do you mean by Status Holder Scheme under the foreign Trade Policy 2009-14. What special incentives/ benefits are available to the Status holders in India? Discuss the minimum limit of FOB/FOR Export value for all the categories of Status holders.
Ques.3 Explain the salient features of Foreign Trade (Development & Regulations) Act, 1992 and explain the role of Board of Trade in deciding the Foreign Trade Policy of India.
Ques. 4 Write short notes on
(a). Electronic Data Exchange
(b). Export Oriented Units
(c) Export Bill
(d) Delivered at Terminal (DAT)
(e) Delivered at Place (DAP)
Section-B
Case Study:
Read the following case carefully and answer the questions given at the end
India is facing stiff competition in the world markets for export of rice. Besides, there are many domestic problems for rice exporters. If these internal problems are relaxed to the extent possible, the exporters may find easy way to boost rice export and such measures will go a long way to sustain the exports. Some of the major problems are as under:
As per the state Govt. policy, various taxes are imposed on rice exports, such as the states are imposing Purchase Tax (on indirect export), Market Fees, Rural Development Fund, Administrative Charges etc. These taxes are rendering the pricing of rice internationally in competitive. Thus, Indian rice becomes costlier in the international market as compared to other competing countries in the world and Indian rice exports get setback many times. In fact, in Pakistan rice meant for exports specially the branded ones; duties are extremely low or duty free.
There is lack of proper infrastructural facilities. Many times exporters, when they carry their stock to sea port and if the stock is not loaded due to some reason or the other, exporters do not find a warehouse or proper place to store their stocks properly and safely at sea port, exporters have to face lot of difficulties, besides, it adds additional expenditure to the exporters. Due to increase in the cost of inputs used for paddy cultivation the production cost goes up and the Minimum Support Price (MSP) for paddy is enhanced every year by the govt. of India to safeguard the interest of the growers. When paddy is converted to rice, it becomes costlier and thus makes it internationally uncompetitive. Rice production meant for export purpose is having subsidy in other countries, which reduces their cost of production and thereby reducing the cost of rice. Therefore, the export price of rice of such countries is more competitive in the international markets compared to Indian rice. The major rice producing nations have decreased the price to capture the international markets but Indian rice prices are inelastic due to relatively high cost of production and become uncompetitive in the international markets. Much of basmati rice export prospects have been lost in the recent part to other competing countries like Pakistan etc because of high prices. Rice mills have not been fully modernized to ensure high milling recovery and reduce the percentage of broken rice. The conventional rice mills are having Rubber Roll Sheller in which percentage of broken rice is more than the modern rice mills that are having under Runner Sheller. Hence, head rice obtained from milling of conventional mills becomes costly due to recovery of higher percentage of broken rice. Therefore, conventional mills are required to be modernized to get recovery of higher percentage of head rice suitable for export. Lack of proper arrangements for production of sufficient quantity of quality seeds needed for cultivation of rice for export purposes.
The export is also suffering much due to the competition from other exporting countries like Thailand, Vietnam and Pakistan because the cost of production in these competing countries is low as compared to the cost of production in India. In fact, trade segment believes that Indian rice can face the global competition if subsidy is provided. In these days basmati rice is facing aroma problem, because intensity of aroma in traditional basmati varieties is not as high as it used to be. Also Basmati varieties are highly prone to lodging and lodging affects the natural grain development. In such situation both aroma and linear kernel elongation are affected. Post harvest handling of produce is another important aspect. Generally, farmers are harvesting the crop at different moisture levels and keeping the produce at higher moisture level for a longer period will impair the intensity of aroma.
In absence of genetically pure seed of basmati varieties, in majority of basmati rice fields, a variation in plant height, grain size and maturity of the crop is found. This is one of the major reasons for poor quality of basmati rice. In fact, at the time of rice processing the grain size can be taken care of, but it is a waste. However, using good quality seed the loss can be converted into profit.
5. Case Questions:
a. List out the problems of Rice Exporters of India.
b. Suggest the measures to overcome these problems.
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